The 37% increase in Ukrzaliznytsia's tariffs threatens small and medium-sized farmers with losses of $300 million, limited access to fertilizers, and, as a result, a 30% decrease in yields, UNN reports, citing the All-Ukrainian Congress of Farmers.
"The increase in freight tariffs of Ukrzaliznytsia and the lack of booking opportunities for small farmers can become serious factors for the destruction of medium-sized farming, which will lead to the deprivation of the tax base of local governments in rural areas.
In particular, the increase in freight tariffs by +37% announced by Ukrzaliznytsia will have a negative impact on the profitability of micro farms and farms, as the increased cost of logistics will be fully transferred to the purchase prices of agricultural products," the All-Ukrainian Congress of Farmers reports.
They point out that due to significantly lower incomes, small farmers will not be able to buy enough fertilizers, which will critically affect their yields. For small agribusinesses, this expense item is key: if you have money, you have fertilizers, and their absence can reduce yields by 30%, leading to losses.
Experts estimate that the increase in Ukrzaliznytsia's tariffs could result in the loss of 1.3 million tons of grain and oilseeds, which is equivalent to $300 million in losses for farmers and micro-enterprises.
In addition, the rising cost of rail transportation will force farmers to use road transport more, which could significantly worsen the condition of roads, especially in wartime.
Recall
Ukraine has already exported 60% of its agricultural products, and exports continue at a steady pace of 4.5-5.5 million tons per month.